TOA (1885) Q2 2027 earnings summary

Executive summary

• H1 FY2027 sales fell 2.8% YoY to ¥160,155m, while operating profit rose 22.1% to ¥13,602m and profit attributable to owners rose 20.0% to ¥9,198m.

• Interim operating, ordinary and attributable profit reached record highs for the fourth consecutive year; improved construction profitability supported earnings growth and higher full-year profit guidance.

Financial highlights

• Gross profit increased 17.4% to ¥22,192m; SG&A rose to ¥8,589m from ¥7,770m, and ordinary profit rose 21.8% to ¥13,434m.

• Basic EPS was ¥118.36 versus ¥97.56; comprehensive income rose to ¥10,729m, including ¥2,012m in valuation gains on available-for-sale securities.

• Gross profit margin improved to 13.9% from 11.5%; operating profit margin was 8.5% versus 6.8%.

Outlook and guidance

• FY2027 consolidated forecast: net sales ¥355,000m, operating profit ¥24,700m, ordinary profit ¥24,300m and profit attributable to owners ¥16,500m; sales guidance fell from ¥360,000m while profit forecasts increased.

• Non-consolidated order forecast rose to ¥354,000m from ¥292,000m, including domestic civil engineering of ¥146,600m and building construction of ¥141,500m.

• Higher expected profitability in domestic civil engineering and building construction supported the profit revision; lower expected building-construction and overseas sales reduced the sales outlook.

• Annual dividend forecast increased by ¥8 to ¥85/share, split equally between interim and year-end payments; forecast payout ratio is above 40%.